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Media in America

Media in America. If It Bleeds, It Leads. Media Use. Next year, Americans are projected to spend more than 9 1/2 hours a day with the media, though hours spent doing two things at once, such as watching TV and using the Internet, are counted twice

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Media in America

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  1. Media in America If It Bleeds, It Leads

  2. Media Use Next year, Americans are projected to spend more than 9 1/2 hours a day with the media, though hours spent doing two things at once, such as watching TV and using the Internet, are counted twice Americans spend an average of 4 1/2 hours a day watching TV

  3. Media Use • 1,555 hours watching television, up from 1,467 in 2000. The estimate includes 678 hours watching broadcast TV and 877 watching cable and satellite. • 974 hours listening to the radio, up from 942 in 2000. • 95 hours using the Internet, up from 104. • 175 hours reading daily newspapers, down from 201. • 122 hours reading magazines, down from 135. • 106 hours reading books, down an hour. • 86 hours playing video games, up from 64.

  4. American Mass Media Trends • Technological Innovation • Governmental Deregulation • Corporate Conglomeration

  5. Mass Media in America • Market Based System • More Flexible/Reacts more quickly • Seeks cost efficiencies • Innovative • Big Business

  6. Technological Innovation New Forms of Mass Media 1900s: Mass Circulation Newspapers (Penny Press) 1930s: Radio 1950s: Television 1980s: VCR, Video Tapes 1980s: Cable, Satellite 1990s: Internet 2000s: Digital broadcasting

  7. Technological Innovation • Competition Fragments Audiences: • Television: Dominant 3 networks face competition from new networks, satellite stations, cable, video • Radio: First faces competition from TV, then cable and internet • Newpapers: Competition from radio, then TV, then satellite/cable, then internet

  8. Deregulation • U.S. Government Regulation of Media: Very Limited • No government ownership of domestic media • 1st Amendment to the Constitution : Very Strong Protection of Press Freedom/Free Speech • Prior Restraint Very Rare: NYT v. U.S. (1971) • Libel Laws Lenient on Press: New York Times v. Sullivan (1964): must show reckless disregard for the truth Example: 1998 case of Oprah Winfrey v. Texas cattle ranchers

  9. Deregulation • Media regulations in the early 20th century in the U.S. • FCC was established to regulate broadcasting because of the ideas of airwaves being owned by the public and limited bandwidth • Anti-trust laws

  10. Deregulation • New technologies mean more choices (at least apparently so) • The proliferation of channels and outlets – Cable TV, satellite TV, Internet, etc. • The traditional argument for government regulation seems to be obsolete – channel capacity is no longer that limited • Technological convergence • A single box is now carrying all kinds of services and contents • Sharing of inputs – economy of scope • Posing problems for old regulatory regimes

  11. Deregulation • Early changes • Fairness Doctrine was abolished in 1987 • The syn-fin rule was lifted in 1993 • Policies limiting ownership of radio and TV stations were relaxed in the 1980s • Enforcement was more relaxed • A self-perpetuating cycle • These changes produced bigger and bigger companies • Bigger companies have bigger lobbying power • More deregulation

  12. Deregulation: The 1996 Telecommunications Act New York Times: “40 million dollars’ worth of lobbying bought telecommunications companies a piece of Senate legislation they could relish. But consumers have less to celebrate.” Deregulation of Television Previous rules New rules 1. Up to 12 TV stations nationwide 1. No limit on no. of TV stations 2. Stations reaching up to 25% of 2. Station reaching up to 35% US TV households of US TV households 3. Only one station in a market 3. called for review; in 1999, FCC announced that multiple station ownership in a single market is allowed subject to conditions

  13. Deregulation: The 1996 Telecommunications Act Deregulation of Radio Previous rules New rules 1.Up to 20 FM and 20 AM stations 1. No limit on station Nationwide ownership 2. No more than two AM and 2. ownership adjusted by two FM stations in a market market size 3. Stations capturing up to 25% 3. stations capturing up to of Market share in the local radio 50% of market share market

  14. Deregulation: Recent Actions FCC in the 21st Century • Michael Powell appointed to FCC by Clinton in 1997. • Appointed chair by Bush in 2001. • Began largest relaxation of ownership rules in 30 years

  15. Deregulation: Recent Actions FCC in the 21st Century • Strongly opposes government regulation until the 2004 Superbowl • Adopts a new drive against indecency on the air • Begins campaign of heavy fines against stations breaching FCC rules • Fines: 2000 - $48,000 2004: $7.7 million 

  16. Deregulation: Recent Actions • Superbowl 2004: most watched television event of the year • Cost of 30 second ad in 2002: $2.5 million  Janet Jackson’s ‘Wardrobe Failure’

  17. Deregulation: Recent Actions • Viacom fined $550,000 for the Superbowl broadcast • House and Senate encouraging during election year • Masterpiece Theater cuts language from Prime Suspect for PBS broadcasts • Some ABC stations refuse to show Saving Private Ryan around Veteran’s Day • Radio Stations cutting songs from playlists such as Elton John’s ‘The Bitch is Back’ and the Rolling Stones’ ‘Bitch’ • Howard Stern fined 1.5 million for sexual discussions • Bono of U2 cited for using the ‘f’ word when receiving an award

  18. Deregulation: Recent Actions 2006 • FCC proposes record $3.9 million for an episode of the CBS crime drama "Without a Trace" that aired in December 2004, citing a graphic depiction of "teenage boys and girls participating in a sexual orgy." • CBS takes case to federal appeals court to set aside the $550,000 fine by the Federal Communications Commission. The network argued the fine was “unconstitutional, contrary to the Communications Act and FCC rules and generally arbitrary, capricious and contrary to law.”

  19. Media Conglomeration: Number of Corporations Dominating Mass Media • 1983 50 Companies • 1987 29 Companies • 1990 23 Companies • 1997 10 Companies • 2000 6 (3 foreign owned)

  20. Largest Media Mergers (dollars) • 1983 340 million • 1997 19 billion when ABC merged with Disney • 2000 350 billion when Time-Warner merged with AOL

  21. Newspaper Chains • Very Profitable • Chains buy up locally owned papers for huge prices • Tax laws favor chains over family ownership Name Circulation Number of Papers Gannett 5.5 million 82 papers Knight-Ridder 3.6 million 27 papers Newhouse 2.9 million 26 papers Tribune 5.2 million 30 papers Dow Jones 2.4 million 8 papers New York Times 1.7 million 26 papers

  22. Media Merger Effects Effects of Media Mergers: Pro: Economies of scale More resources More efficient production Anti: Narrow the range of options Homogenize content Erode democratic control

  23. Media Merger Effects Economies of scale Example: Cable, Internet services More resources: Example: Film Studios More efficient production Example: News, Radio

  24. Time-Warner/AOL Merger Mutual Needs: AOL needs high speed/cable (Time-Warner is a cable company). Time-Warner has little internet presence. • Faster internet service • Interactive TV • Online music • Distribution of movies (over internet) • Advertising/E-commerce • Blue skies development • Cross promotion • News on internet (CNN)

  25. Media Merger Effects Reduce Choice: Monopoly power of suppliers Example: Cable companies Homogenize Content: Example: Radio Democratically unaccountable: Example: Political Interference

  26. Media Merger Effects Trivialization and sensationalism • The largest common denominator • The trend towards infotainment • Light content and the buying mood • Reality TV • Scandal and soft news • What is quality content? Elitism?

  27. Media Merger Effects Declining localism • Availability of local media products is affected by the presence of global media giants? • Development of local media industry is affected by the presence of global media giants? • What happens when local media organizations are owned by foreign capital?

  28. OJ Dominates the TV

  29. Top News Stories Network TV Sept. 16 - 21, 2007 Rank Story Percent of News 1 O.J. Simpson 15% 2 2008 Campaign 93 US Economy 84 Events in Iraq 75 Jena 6 56 Iraq Policy Debate 57 Iraq Homefront 58 Attorney General Nominee 39 Norman Hsu Fundraising Scandal 210 Iran 2 

  30. OJ does not appear in print

  31. Top News Stories Newspapers Rank Story Percent of Newshole 1 Events in Iraq 14% 2 2008 Campaign 9 3 Attorney General Nominee 7 4 Health Care 7 5 US Economy 76 Norman Hsu Fundraising Scandal 57 Iran 58 Iraq Policy Debate 39 Jena 6 310 O.J. Simpson 2

  32. Top News Stories • Modest Interest in O.J. Simpson Arrest

  33. Media Merger Effects Ideological biases • Pro-business, pro-capitalism • Conservative • Class biases in the news media • The Liberal Media Establishment?

  34. Ideological Bias 2003: Dixie Chicks banned from Cumulus Media and Clear Channel (262 and 1,225 stations) when Natalie Maines, lead singer, says “we’re ashamed the president of the United States is from Texas” in London concert

  35. Ideological Bias 2004: Disney refuses to release Michael Moore’s documentary Fahrenheit 9/11

  36. Ideological Bias Rupert Murdoch Fox News: Fair and Balanced?

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